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Saturday, September 5, 2009

A difference a day makes.....

Hey everyone

Well, the stock fell below the stock price on a bad government review of one of the company's products. There are two weeks left before expiration. There doesn't seem to be any more news scheduled for the company until then. So the stock is kind of in the hands of the major traders for now. The positive thing is that it did not fall as far as I thought it would and actually is still in profitable territory for the trade. There is a floor for the stock. This means that if the stock falls to this level, a sell order for the stock will be executed.

Some thought on what to do is ahead as there will some options coming up once expiration date comes. What is meant by that is there will be a choice of buying more shares of the company and selling more calls or selling the shares and looking for another company's stock to trade.

Now is a good reminder that the account is just getting started and that there will be trades that are not profitable. Normally the best thing to do in that manner is to just sell the trade and find another.

-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

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